Carbon credit markets for AFOLU in LAC: Status, challenges, and actions needed

The "Carbon Credits Markets for AFOLU in LAC" Report, spearheaded by the World Bank, embodies a pivotal initiative supporting green growth in the LAC region. This report emerges against the backdrop of escalating climate change impacts on human activities and ecosystems in LAC. The region's countries, many committed to achieving net-zero emissions by 2050, face formidable challenges and financial constraints in actualising these climate goals. 

In this context, carbon pricing, particularly carbon crediting, under broad policy frameworks, becomes instrumental. Properly implemented, it can not only aid LAC countries in meeting their mitigation targets but also stimulate financing for these initiatives, contributing to broader sustainable development. However, the rapid adoption of carbon crediting, especially in the AFOLU sector, entails challenges. 

The report aims to evaluate the carbon crediting landscape in LAC, focusing on the AFOLU sector's pivotal role in the region’s journey towards net-zero emissions. It intends to identify strategic actions to leverage opportunities and mitigate risks and challenges. adelphi develops desk review work to provide an overview of the current state and trends in carbon crediting markets, both regionally and globally. The team also identifies best practices adopted by governments to foster market participation and incorporates insights and recommendations from local experts in the LAC region, ensuring a well-rounded and informed perspective.